Bulgaria Default Swaps to Rise on Euro Debt, UniCredit Says
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The cost of insuring Bulgarian bonds against non-payment is likely to increase because of the Balkan country’s economic ties with Greece, according to UniCredit SpA.
Investors should buy Bulgarian credit-default swaps at 220 basis points, or 2.20 percentage points, on expectations the five-year contracts will climb to 270 points, the bank said in a report dated yesterday. Swap prices rise as perceptions of borrowers’ creditworthiness deteriorate.